Does your bank work in your best interest?

By Georgie Pickett-Heaps,7 May 2018| 2 min read

The majority of Australians believe they have a good relationship with their bank but their expectations are surprisingly low.

We recently surveyed 1,000 Australians to find out how they felt about their bank and why people are prepared to settle for anything less than the best deal, particularly when it comes to their mortgage.

The research uncovered that although 61% of respondents say they have a good relationship with their bank, 66% do not believe their bank works in their best interest.

“There’s clearly a disconnect in expectations when it comes our relationships with banks,” says David Hyman, co-founder and managing director at Lendi. “It’s crazy that people rate their relationship as positive, yet they don’t genuinely expect their bank to work proactively in their best interest.”

The survey also showed only 27% of respondents believe they are being offered the same deal that their bank is offering new customers.

Hyman continues; “Nearly three quarters of people do not believe they are getting the same value as new customers but this is relatively easy to rectify.

“Homeowners should review their mortgage and compare it to what their lender is offering to attract new customers. If your deal is not the same, ask your bank to match it. If they refuse, talk to a home loan specialist about switching.

“It’s good to see that 70% of those surveyed would switch banks for a better deal. A little bit of effort could save you a lot of money over the life of a loan.”

Important legal stuff

COMPARISON RATE WARNING: This comparison rate is true only for the example given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. The comparison rates are based on a loan amount of $150,000 over a loan term of 25 years.

Lendi is the trading name of Lendi Pty Ltd, a related body corporate of your licensed credit assistance provider, Auscred Services Pty Ltd (ACN 164 638 171, Australian Credit Licence Number 442372). We will never sell your email address to any third party or send you nasty spam, promise.

EXAMPLE: This example is current as at 20th October 2016. A Click Loans Online Principal and Interest Loan of $150,000 over 25 years has monthly repayments of $767. This is calculated based on the interest rate of 3.69%, comparison rate of 3.69%, upfront fees of $0 and annual fees of $0.

IMPORTANT INFORMATION: Loan terms of between 1 Year and 40 Years are available subject to lender and credit criteria. Maximum comparison rate will not exceed 14.99% (see comparison rate warning above). Any calculations or estimated savings do not constitute an offer of credit or a credit quote and are only an estimate of what you may be able to achieve based on the accuracy of the information provided. It doesn't take into account any product features or any applicable fees. Our lending criteria and the basis upon which we assess what you can afford may change at any time without notice. Savings shown are based on user inputted data and a loan term of 30 years. All applications for credit are subject to lender credit approval criteria.

Lendi is a privately owned and operated Aussie business. Our mission is to provide Aussies with the right experience when choosing a home loan from our panel of major and non-bank lenders including Click Loans which is a wholly owned subsidiary of Auscred Pty Ltd and a related body corporate of Auscred Services, your credit assistance provider. Although Lendi compares over 1600 products from over 30 lenders, we don't cover the whole market or compare all features and there may be other features or options available to you. While Lendi is 40% owned by founders and employees, we have also been supported by some great minority shareholders including Bailador, Macquarie Bank Ltd and a number of Australian sophisticated investors. We have an independent and founder led board.